Coca Cola 2003 Annual Report Download - page 85

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 12: NET CHANGE IN OPERATING ASSETS AND LIABILITIES
Net cash provided by operating activities attributable to the net change in operating assets and liabilities is
composed of the following (in millions):
2003 2002 2001
Decrease (increase) in trade accounts receivable $80$ (83) $ (73)
Decrease (increase) in inventories 111 (49) (17)
Decrease (increase) in prepaid expenses and other assets (276) 74 (349)
Decrease in accounts payable and accrued expenses (164) (442) (179)
Increase in accrued taxes 53 20 247
Increase (decrease) in other liabilities 28 73 (91)
$ (168) $ (407) $ (462)
NOTE 13: RESTRICTED STOCK, STOCK OPTIONS AND OTHER STOCK PLANS
Prior to 2002, our Company accounted for our stock option plans and restricted stock plans under the
recognition and measurement provisions of APB No. 25 and related interpretations. Effective January 1, 2002,
our Company adopted the preferable fair value recognition provisions of SFAS No. 123. Our Company selected
the modified prospective method of adoption described in SFAS No. 148. Compensation cost recognized in 2002
was the same as that which would have been recognized had the fair value method of SFAS No. 123 been applied
from its original effective date. Refer to Note 1.
In accordance with the provisions of SFAS No. 123 and SFAS No. 148, $422 million and $365 million,
respectively, were recorded for total stock-based compensation expense in 2003 and 2002. Of the $422 million
recorded in 2003, $407 million was recorded in selling, general and administrative expenses and $15 million was
recorded in other operating charges (refer to Note 17). In accordance with APB No. 25, total stock-based
compensation expense was $41 million for the year ended December 31, 2001.
Stock Option Plans
Under our 1991 Stock Option Plan (the ‘‘1991 Option Plan’’), a maximum of 120 million shares of our
common stock was approved to be issued or transferred to certain officers and employees pursuant to stock
options and stock appreciation rights granted under the 1991 Option Plan. The stock appreciation rights permit
the holder, upon surrendering all or part of the related stock option, to receive cash, common stock or a
combination thereof, in an amount up to 100 percent of the difference between the market price and the option
price. Options to purchase common stock under the 1991 Option Plan have been granted to Company
employees at fair market value at the date of grant.
The 1999 Stock Option Plan (the ‘‘1999 Option Plan’’) was approved by share owners in April of 1999.
Following the approval of the 1999 Option Plan, no grants were made from the 1991 Option Plan, and shares
available under the 1991 Option Plan were no longer available to be granted. Under the 1999 Option Plan, a
maximum of 120 million shares of our common stock was approved to be issued or transferred to certain officers and
employees pursuant to stock options granted under the 1999 Option Plan. Options to purchase common stock under
the 1999 Option Plan have been granted to Company employees at fair market value at the date of grant.
The 2002 Stock Option Plan (the ‘‘2002 Option Plan’’) was approved by share owners in April of 2002.
Under the 2002 Option Plan, a maximum of 120 million shares of our common stock was approved to be issued
or transferred to certain officers and employees pursuant to stock options granted under the 2002 Option Plan.
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